During the Year a Parent Makes Sales of Inventory at a Profit

question 13

Multiple Choice

During the year a parent makes sales of inventory at a profit to its 75 percent owned subsidiary.The subsidiary also makes sales of inventory at a profit to its parent during the same year.Both the parent and the subsidiary have on hand at the end of the year 20 percent of the inventory acquired from one another.Consolidated revenues for the year should exclude:

• A)80 percent of the total revenues from intercompany sales.
• B)total revenues from intercompany sales.
• C)only the revenues from the subsidiary's intercompany sales.
• D)only the revenues from the parent's intercompany sales.

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Definitions:

Groups

Collections of subjects or data points that are often categorized for comparative analysis in experiments or studies.

Null Hypothesis

A statement that asserts there is no effect or no difference, typically the default assumption in a statistical test.

Groups

In statistics, groups refer to sets of subjects or data points that are classified together based on certain characteristics.

Null Hypothesis

A proposal in statistics that suggests no observable effect or no association between variables, serving as a premise to be tested against experimental evidence.